The British currency rose against the US dollar to the resistance level of 1.1830.
The pound received support from strong inflation data in the UK last month. The consumer price index increased by 3.2% in annual terms and significantly exceeded expectations. Core inflation strengthened to 3.1%, and this indicator also turned out to be higher than forecasts. Consumer prices, along with labor market data, are key indicators for the Bank of England's decision to reduce the volume of purchases of securities. Already, inflation is significantly higher than the Central Bank's target, although the regulator invariably claims that the price increase is temporary. BNP Paribas analysts believe that the US dollar will weaken against currencies with a high beta coefficient. In their opinion, the main beneficiary of this process will be the British pound, since it is predicted that the Bank of England will react much more actively to the economic recovery than the European Central Bank. Already, the pound maintains a strong position against the dollar, and any tightening of monetary policy by the Bank of England will strengthen the position of the national currency.
The forecast expects further growth of the pound/dollar exchange rate to the values of 1.1850, 1.1870 and 1.1900.